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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Saturday, July 23, 2011

Contagion fears likely to continue

Contagion Fears Unlikely To Dissipate Despite
Greek Deal
Wall Street Journal
While euro-zone leaders also agreed to lower the interest rate
charged on bailout loans to Ireland and Portugal, bond yields in these
countries are still at very high levels. Under their EU/IMF bailouts,
both countries are scheduled to return to the ...

PIIGS Update: Greece to Get Voluntary Debt
Restructuring
Seeking Alpha
It's not that a Greek default now has become less likely, it's that the
magnitude of the default will be much less than the market feared. And that,
in turn, has reduced the likelihood of a sovereign debtdefault contagion.
It's interesting that the ...

Debt default would mean financial
crisis round two
New Zealand Herald
A US recession would be virtually inevitable and if the global financial
crisis of 2008 is any guide, commodity prices would plummet. But so
would the New Zealand dollar because in times of elevated
risk aversion money drains away from peripheral ...

Computers In China Used For IMF Hack -
Source
Wall Street Journal
The IMF is a critical node of international financial and economic
information, with vast databases on currencies, bonds, bank finances and
other areas. Officially, the IMF said it's not yet prepared
to place blame on the hack of one of its servers, ...

IMF poised to take backseat role in Greece rescue
Financial Times
But experts and officials involved in IMF discussions said
that the fund would play an increasingly marginal role, focusing on giving
its seal of approval to Greek policies rather than providing the loans. Thus
far, the IMF has provided about a third ...

Euro crisis: No let-up in Lisbon's
belt-tightening
euronews
If that happens, those lenders will suffer a loss and, so, there will be a
partial default.” euronews: “Taking into account Portugal's
normal rate of growth, will it have the money to pay the interest on the EU-IMF loan?”
Álvaro Almeida: “That is one ...

States face 'financial crisis' in event of federal default
Gazette.Net: Maryland Community News Online
"In short, this scenario would produce an unprecedented financial
crisis," S&P's report said. For states, S&P's report warned
all state ratings would likely receive a downgrade if there is a federal default.
"We'd also assume a significant downturn in ...

Devastating Portrait of a US Government Default
Business Insider
In a recent article, Simon Johnson, a former IMF chief
economist and senior fellow at the Peterson Institute for International
Economics, paints an revealing picture of how he envisions a debt defaultdevastating
the US economy. ...

IMF: Colombia Shouldn't Use Capital Controls To Curb
Peso
Wall Street Journal
The peso's surge against the dollar has hurt Colombian
exporters by making their products less competitive overseas. Colombia
"is not at a point where capital controls are needed," Wolfe said.
The government has attempted to halt the peso's strength by ...

EU's Rehn: euro zone Greek deal sets clear
direction
Reuters
BRUSSELS, July 22 (Reuters) - Europe's top economics official said on Friday euro zone
leaders had set a clear direction for ending the European financial
crisis. An emergency summit of leaders of the 17-nation currency area
agreed on Thursday to ...

Turkey seeks roadmap in face of second global financial
crisis
Today's Zaman
If the current impasse remains unsolved by August 2, the US will default on
its debt and most likely lose its top notch credit rating, as Moody's and
Standard and Poor's have already warned. “We believe that Turkey will
suffer minimal consequences from ...

Further rate hikes required, says IMF
Manila Standard Today
Vivek Arora, mission chief of the IMF, said the Bangko Sentral
did the right thing when it raised its overnight borrowing and lending cost
by 50 basis points as well as the reserve requirement by 1 percentage point
as a part of its policy stance ...

Let's Make A Deal!
FXstreet.com
Against the dollar, though, it gained about 8% after inflation
over the past year. The IMF review was aimed at boosting
those inside China, including at the People's Bank of China, who have been
arguing for change, although perhaps not on as sweeping a ...

Liberal clergy oblivious to financial crisis?
OneNewsNow
A conservative religious organization is questioning why a group of church
leaders seems to be encouraging more dependence on the federal government.
The comment follows a meeting this week between those leaders and President
Barack Obama. ...

IMF's Greek programme was fatally flawed from the
start
Financial Times... into its present mess, the truth of the matter is that the IMF programme
was fatally flawed from the start, in the sense that it prescribed an excess
degree of fiscal austerity without the benefit of either a debt writedown or
an exit from the euro.

Mispricing will result in 'contagion' of eurozone
crisis
FT Adviser
Mispricing of Greek debt due to its inability to restructure or write down
borrowing poses a "clear risk of contagion to other
'debt dominoes' in the eurozone" and makes a default both
'inevitable' and 'desirable', Iain Stewart, manager of the Newton ...

Eastern Europe Eyes Euro-Zone Troubles
Wall Street Journal
By PAUL HANNON LONDON—An escalation of the euro zone's fiscal
crisis could have a "serious" negative impact on economic
growth in the countries of Eastern Europe and the former Soviet Union, the
European Bank for Reconstruction and Development warned ...

Debt Crisis Shadow Lifted Over Forint — for Now
Wall Street Journal (blog)
Still, the worry remains that the forint's strength against the euro and dollar could
crumble if the government fails to deliver on its fiscal tightening promises.
Especially as Hungary will need to start repaying its bailout package to the IMF. ...

Irish People Adopt the Skeptical View
Wall Street Journal (blog)
The Irish got a much larger 2% cut instead only when EU leaders panicked
because they feared Greek contagion spreading to threaten
the wider-euro area, said an e-mailer to the national radio show.
Almost everyone in Ireland agrees the original bailout ...

22/07/2011Spain: debt deal will 'stop contagion'
Expatica Spain
The Spanish government welcomed the deal reached in Brussels to bail out
Greece, saying that it would "halt all possibility of contagion"
in the eurozone. "The eurozone countries have agreed on a deal to
respond effectively to the situation in Greence ...

Economist Q&A on Europe's debt accord
Spartanburg Herald Journal... driving up the euro's value. If Greece were
not part of a common currency area, it would almost certainly follow the
successful adjustment path of other developing economies from a deep financial
crisis - official assistance from the IMF or
another ...

Markets take comfort in revisions to Greece rescue
Sydney Morning Herald
FEARS of another financial crisis triggered by an implosion
in the euro zone have retreated, after the region's leaders
unveiled a new €109 billion ($145 billion) rescue package for Greece. Markets
welcomed news yesterday that Europe's leaders would ...

Brazil Stocks Post Modest Gains But Trading Jittery
Wall Street Journal
The package for Greece amounts to 109 billion euros ($157 billion) in aid,
including official loans from the private sector, and other measures that
could help contain possible contagion to other weak
economies in the euro-zone from Greece??s debt ...

Looming debt default looks dire for families
Buffalo News
“If we default on our debt even for a few days, it's going
to affect interest rates for years,” Schumer said, adding that the economic
effects of that would be far more serious than the 2008 financial
crisis. by 75 to 100 “basis points” — that is, ...

Canadian Inflation Cools in June
Wall Street Journal
The last time headline inflation declined that much on a monthly basis was
December 2008, at the height of the financial crisis. The June
data were below market consensus for a 3.6% annual rate and a
month-over-month drop of 0.2%. ...

REFILE: IFR-COMMENT: Stable door. Horse. Bolted.
Reuters
The EU has finally realized they need to be preemptive if they are to get
ahead of the game and limit contagion risks. There are two themes
that we would keep an eye on going forward which will prove important in
determining whether the crisis has ...

Price growth brightens outlook for Gold Coast property
Gold Coast Bulletin News
WHILE there's no denying the Gold Coast is still reeling from the
repercussions of the Global Financial Crisis, not all the news is bad.
A report from RPdata.com shows the more affordable housing market has
typically recorded growth in median sale ...

EU and IMF agree to give Greece 109 billion
euros — RT
By RT
Leaders of the EU member states, together with the IMF, have come
to agreement on the allocation of 109 billion euros to help Greece out of the financial
crisis that might put the very existence of theeuro under
question.
News RSS : Today

Oiling the Wheels of Russia's Budget - Robert Amsterdam
By Citizen M
With euro-contagion plaguing Europe and the US facing
a looming debt problem, Russia may appear to be a safer financial haven. Look
closer however, they suggest, and what you will find is a lack of fiscal
strategy and an entrenched over ...
Robert Amsterdam

Spies in China Said To Be Behind IMF Hacking
| Max Keiser
By stacyherbert
Or as China basically vendor finances several of the top member IMF countries
. . . perhaps it views itself as just looking over its 'investments?' I mean,
heck, recipients of welfare (certain sorts anyway) in America must subject .... Guest
Post: David Morgan On Silver Price Manipulation, Delivery Default&
Supply Shortage Risks · The Fatal Flaw In Europe's Second "Bazooka"
Bailout: 82 Million Soon To Be Very Angry Germans, Or How Euro Bailout
#2 Could Cost Up To 56% Of ...
Max Keiser

What the European Greek debt deal means | Credit Writedowns
By Edward Harrison
The liquidity issues are the immediate concern because contagion to
Italy meant the Eurozone sovereign debt crisis was at a critical point,
having imperilled the euro zone's third largest economy.
That is why Greece has been cut loose. ...
Credit Writedowns

Increased Fears Surrounding the Economy -- MrSwing
The Euro gained relief on an easing of immediate contagion fears,
although the political implications will also be watched very closely given
the potential for substantial opposition within Germany. There were further
negotiations ...
Free Daily Swing and Day Trading...

When Default Inspires Relief - WNYC
And since Greece's fiscal troubles began to spiral out of control more than a
year ago, there has been widespread fear that a Greek default would
lead to contagion. What we're seeing now is just the opposite: A
sort of anti-contagion, ...
The latest stories from www.wnyc.org

What the New Greek Deal Means for the U.S. - The Curious ...
By Roya Wolverson
The thinking here is that the biggest threat to Europe is 'contagion,'
or the spread of investor fears about Greece to other shaky eurozone
countries like Italy and Spain, which would force bond prices in those
countries to rise even higher and make their prospects of paying down debt
all the ... The chart shows that, at the beginning of 2009, euro fears
accounted for nearly 100% of Italy's rising borrowing costs; by April of this
year the euro share had fallen to 40%. ...
The Curious Capitalist

Another Disastrous Euro Bailout Adopted
In spite of the new bailout, the panicked ones had to acknowledge in their
pronouncement, that the new plan included a ("transitory") Greek
debt default. The European Central Bank and the IMF heads,
Dominique Strauss-Kahn and Christine ...
LaRouchePAC

German taxpayers are being asked to socialise Europe's debts ...
By Jeremy Warner
“Today was game changing”, Christine Lagarde, the newly appointed managing
director of the IMF, gushed. “It was amazing to see heads of
government come together and say what happens to one could happen to another
and act collectively”. ... Europe has done what it takes to
save the euro. That's the narrative, in any case. In reality, the
measures agreed on Thursday night raise as many questions as they answer.
What the British response to it all should be is anyone's guess ...Finance

Euro Statement Translated
By Macro Man
We agree to support a new programme for Greece and, together with the IMF and
the voluntary contribution of the private sector, to fully cover the
financing gap. The total official financing will amount to an estimated 109
billion euro. ...
Wall Street Pit